ATF prices raised 5.46%; commercial LPG cylinder cost increased by ₹9.50 from September 1

Aviation turbine fuel (ATF) prices were raised by 5.46% on September 1, while commercial LPG rates were increased by ₹9.50 per 19-kg cylinder, according to price revisions announced by state-owned oil marketing companies. The changes follow a rise in international benchmark fuel prices.

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The increase is expected to raise operating costs for airlines and commercial establishments such as hotels and restaurants.

Jet Fuel Becomes Costlier

The price of ATF, or jet fuel, was increased by ₹6.28 per litre to ₹121.28 per litre for domestic airlines, according to oil company notifications.

The latest revision comes after a roughly ₹5 per litre increase implemented on August 1. ATF is one of the largest expenses for airlines and can account for up to 40% of operating costs, according to the PTI report carried by Business Standard.

Commercial LPG Rates Raised

Commercial LPG used by businesses has also become more expensive.

The price of a 19-kg commercial LPG cylinder has been increased from ₹2,738 to ₹2,747.50. The price of the market-priced 5-kg LPG cylinder was also raised from ₹762 to ₹764.

The increase reverses part of the reductions seen over the previous two months. Commercial LPG rates were cut by ₹192 per cylinder on August 1 and by ₹183.50 on July 1, according to the report.

Prices Had Spiked During West Asia Crisis

Commercial LPG prices had surged sharply earlier this year following disruptions linked to the conflict in West Asia.

According to the report, commercial LPG rates rose from ₹1,740.50 per 19-kg cylinder in February to ₹3,113.50 in June, an increase of ₹1,373. The subsequent declines in July and August came after prices had reached record highs.

Domestic LPG, Petrol And Diesel Unchanged

There has been no change in domestic cooking gas prices.

The price of a 14.2-kg domestic LPG cylinder remains at ₹942. Household LPG prices were last revised on June 7, when rates were increased by ₹29 per cylinder. Prior to that, prices had been raised by ₹60 in March following a rise in global energy costs, according to the report.

Petrol and diesel prices also remained unchanged. Fuel rates were last increased by around ₹7.50 per litre each in May and have not been revised since then.

Monthly Revision Mechanism

ATF and LPG prices are revised on the first day of every month based on international benchmark prices and foreign exchange rates. Actual prices vary across states depending on local taxes such as value-added tax (VAT).